The name Rockefeller is known to any person who is interested in the financial sector. He's not famous for making hundreds of millions of dollars in a day, or for being a great investor. Billionaire John Rockefeller is the standard of a businessman .
Despite the fact that he conducted his business about a century ago, his principles and the very essence of his approach to business remained in the memory of many people. Comparison with Rockefeller's business acumen and prudence is the highest praise for any American entrepreneur. The biography of John Rockefeller is a must-read for any person who wants to start his own business. From this article you will learn:
- Childhood
- First job and start of business
- Standard Oil and the path to a billion
- John Rockefeller Rules
Biography
John Davison Rockefeller is the richest man in the world in the history of mankind.
The future billionaire was born on July 8, 1839 in Richford, New York. Both parents, William Avery Rockefeller and Louise Selianto, were members of the Baptist Church. The family raised six children, of whom John was the second oldest. William worked as a traveling salesman and from childhood instilled in his children the ability to trade. To do this, his father paid John to do household chores. During periods when William was away, his mother, who did not work anywhere and was only involved in housework, had to save, and Louise instilled this ability in her offspring.
The world's first billionaire John Rockefeller
Little John showed commercial savvy from an early age - he sold sweets to his sisters, which he bought in bulk. And at the age of 7, the boy was hired by his neighbors on a farm, where he earned his first money by picking potatoes and raising turkeys. From the very first days of his working life, Rockefeller kept a ledger where he carefully entered income and expenses.
Young John gave the impression of a quiet, thoughtful boy to those around him. The lean and unemotional child thought for a long time and was in no hurry to make a decision. But in fact, John was a very sensitive boy, and was experiencing the loss of his sister, who died as an infant. After the girl's death, John lay prone on the grass away from home for 12 hours.
John Rockefeller in his youth
Rockefeller did not like to study at school, although teachers noted the boy’s tenacious memory and ability to think logically. During his student years, John started a moneylending business. Rockefeller realized that by lending small amounts at low interest rates, he could make money easily. The boy did not want to become a slave to money and work for a salary day and night; John decided to make money his own slaves and make it work for himself. After graduating from school, John became a student at a commercial college, so the young businessman took a three-month accounting course, where he learned the necessary basics of managing money.
Children's Legacy
His only son inherited $460 million and built the most famous skyscraper in New York - the Empire State Building. John Rockefeller Jr. bequeathed $240 million to his 6 children. John bequeathed a considerable part of his fortune to the church.
An asteroid discovered in 1918 was named after the billionaire. Rockefeller Sr.'s 2007 net worth was $318 billion, while that year's richest man, Bill Gates, was worth $50 billion. John Rockefeller is recognized as the richest man in history.
Business
In 1855, John got his first and only hired job at Hewitt & Tuttle in the accounting department. The young man started with a salary of $17, but after a few months the young man received a raise to $25. A year later, Rockefeller was appointed manager of the company. John began to receive a salary 20 times more than the accounting salary. But the ambitious young man was not satisfied with this amount, since the previous manager was paid much more and, without working even a year, John quits to start his own business.
In order to become a partner of a businessman from Great Britain, Rockefeller had to borrow $1,200 from his own father at 10% per annum. Having raised the necessary $2,000, Rockefeller became a partner and stockholder. The company traded agricultural products. Rockefeller quickly won the trust of his partners with his business acumen, intuition and sincerity. The young man began managing the financial affairs of the enterprise.
Businessman John Rockefeller
In the second half of the 19th century, the development of a new market area began in America - the oil refining business, as kerosene lamps began to be popular in everyday life. John Davison Rockefeller invites practicing chemist Samuel Andrews to collaborate and makes the scientist a companion of the new company. Clark's previous partner did not want to participate in such a business, and John had to buy out a stake in the company and take over the management of the business.
At the age of 31, Rockefeller created the Standard Oil company, which was engaged in the full cycle of kerosene production, from oil production to the sale of finished products. A peculiarity of doing business was that John did not pay employees in cash. The businessman gave out incentives with shares of the enterprise. This approach allowed employees to work with greater responsibility, since now their well-being directly depended on the success of the company.
John Rockefeller at work
Rockefeller's business development proceeded at a rapid pace. Thanks to his entrepreneurial spirit and ability to negotiate with influential people, John achieved reduced prices for freight transportation by rail for his own company. Compared to its competitors, Standard Oil's petroleum products were transported 2-3 times cheaper. Rockefeller thus forced other oil companies to sell production to Standard Oil. Thus, the enterprising businessman turned into a monopolist.
In 1890, the anti-monopoly law of Senator Sherman was passed in the United States, which was directed against the activities of the Standard Oil company. Over the course of 20 years, Rockefeller was forced to split production into 34 controlled enterprises. In each of them, John secured the right to own a controlling stake. This division of business had a positive effect on the tycoon’s capital; Rockefeller increased his own income many times over.
Starting a business
It is difficult to talk briefly about Rockefeller's biography. When he left the post of manager, businessman from England John Clark was looking for a partner who was willing to invest $2,000 in creating a joint business. John had only 800 in his stash at that time, but his father lent him the remaining amount at 10% per annum. Already on April 27, 1857, Rockefeller became a junior partner in the Clark and Rochester organization. They traded in hay, grain, meat and many other goods. Just at this time, the civil war began and the authorities began to need to supply a large army. The company was hit with a flurry of food orders, which it was not possible to secure with a capital of $4,000. It was decided to take out a loan. Banks were reluctant to allocate funds to young companies, but Rockefeller managed, with his charm and sincere intentions, to persuade the bank director to issue a loan. In 1864, John decides to get married. His chosen one was Lore Celestine Spelman, an ordinary teacher whom Rockefeller had known since his student years. She was devout and thought rationally and practically. John repeatedly said that without Laura's advice he would never have become a rich man.
State
John Rockefeller's annual income from the activities of Standard Oil was $3 million. At the time of his death, according to experts, the oil magnate's fortune was $1.4 billion. The company owned 70% of all the world's oil fields. In terms of the current dollar exchange rate, this is $318 billion or 1.5% of the GDP of the United States. Rockefeller owned 16 railroad companies, 6 steel mills, and 6 shipping companies. The businessman owned 9 banks and 9 real estate companies.
At the end of his life, Rockefeller surrounded himself with luxury, but did not advertise this to society. The tycoon's family owned orange groves, villas and mansions, and a land plot of 273 hectares. John Rockefeller's favorite game was golf, so the billionaire had a playing field at his disposal for his personal use. The tycoon explained his own well-being by discipline and maintaining 12 golden rules of life, which John developed in his youth.
The Federal Reserve System is under the "Rockefeller Cap"
It is alleged that the Federal Reserve System (FRS) is owned by the Rockefellers.
This is because they are the original founders and owners of the Federal Reserve System. This institution provides money to the government to give to the people at interest, which must be returned to the Rockefellers.
Essentially, it is a private bank, not a national one, which begs the question of why the US government is getting money from a private institution. This institution is accredited to finance all modern wars, which can be attributed to the Rockefellers.
JP Morgan and the Rothschilds are also connected to the Federal Reserve, and there is no denying the connections between the Morgans, the Rothschilds and the Rockefellers. It is estimated that up to 90% of the wealth of Fortune 500 companies belongs to these 8 families directly related to the Rockefellers.
Charity
John Rockefeller attended a Protestant church from childhood and, as an exemplary Christian, from the very first earnings he began to donate tithes to the needs of the parish he visited. The oilman did not change his own habit until the end of his life. The tycoon donated $100 million. In addition to donating to the church, Rockefeller did a lot of charity work. John transferred sums of money to the University of Chicago and the New York Institute for Medical Research, of which John was the founder. At the beginning of the 20th century, Rockefeller created the Council for Universal Education and the Rockefeller Foundation.
Tycoon John Rockefeller in 1885
The oil tycoon wrote a number of biographical books, the first of which was the 1909 publication “Memoirs of People and Events.” In 1910, Rockefeller’s book “How I Made $500,000,000” about the history of enrichment was published. In 1913, the entrepreneur wrote the book “Memoirs”, in which he outlined all the interesting facts of his own biography.
Work, first and last
In the biography of John Rockefeller, there is only one hired job: while still very young, he joined the service as an assistant accountant in a small company. Having demonstrated professionalism and shown a genuine interest in his profession, he quickly began to climb the career ladder.
Caricature depicting Rockefeller's business acumen. Source: seenfirst. news
However, John left his job, having already risen to the rank of manager, exactly at the moment when he suspected that his salary was significantly less than that of his predecessors in similar positions. John Rockefeller was not one of those who could be used and paid little money.
Personal life
At the age of 25, John Rockefeller married teacher Laura Celestia Spelman from a wealthy family. The girl attracted the groom with her piety. The young people were united by a mutual feeling of love for each other and views on life and family well-being. Both were extremely economical and unpretentious in their desires.
John Rockefeller and his wife in 1911
The Rockefeller family had 4 daughters and the only heir was the son John D. Rockefeller Jr., who continued his father’s work. Even when Rockefeller purchased the Cleveland oil refinery, the family continued to live in rented housing and did not have servants. As the oil magnate himself wrote, John owes his commercial success to his wife.
After the death of his wife, John Rockefeller lived for a long time. The oilman fell in love with female company and gradually got used to wearing expensive suits. Rockefeller's favorite headdress was a straw hat, in which the elderly entrepreneur often posed for photographs.
John Rockefeller in old age
John raised his children in an original way. Each child had an account book in which monetary rewards and expenses were recorded. In the Rockefeller house there was a certain system of rewarding children for their work. John rewarded his daughters and son for their refusal of any benefits. For example, for a day without candy, a child was entitled to a sum of money.
John D. Rockefeller Jr. increased the fortunes of the family corporation many times over. And five grandchildren, the most famous of whom were Nelson, Winthrop and David, participated in the political and economic life of the United States until the beginning of the 21st century.
Rothschilds
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Head of the family: Mayer Amschel Rothschild (1744–1812, lived 68 years). Net worth: about $3.2 trillion. The founder of the richest famous family in the world, Mayer Amschel, was born into the family of a Jewish emigrant money changer in Germany. My father’s shop was located in the ghetto in Frankfurt am Main and operated under a red sign with an eagle “Rot Schild” (“red shield” translated from German). It was this sonorous name, learned from childhood, that Mayer Amschel added to his own surname and over 300 years of history made it synonymous with wealth. At the age of 12, Mayer's father sent him to Hanover to study at Oppenheimer's bank. At the age of 16, the son returned and continued the business of exchanging and selling coins and medals in the shop of his deceased father. Here he, in fact, opened the first bank, providing services for exchanging coins of some German principalities for others. Mayer Amschel Rothschild quickly achieved success, showing unprecedented acumen and an exceptionally sharp mind. He figured out how to avoid the risks of transporting currency by sending cotton and wool from England to Europe, not money, and selling them at exorbitant prices. Thus, payments in each country took place in the local currency, and the exchange rate turned out to be very favorable for Rothschild. At the age of 20, Rothschild began supplying coins to the princely house of Hesse-Kassel, and 5 years later, the head of the house, William IX, appointed Rothschild as his personal banker. In subsequent years, Rothschild both increased his employer's fortune and amassed his own. At the age of 27, Mayer Amschel married the daughter of a moneylender. The marriage produced 5 sons and 5 daughters. Mayer Amschel taught his sons banking and sent them to different parts of Europe to open branches of the Rothschild Bank. The network covered London, Vienna, Paris, Naples, the eldest son managed the family’s affairs in his native Frankfurt. While the sons were in charge of management, Rothschild's daughters kept the documentation. The founder of the dynasty thought out to the smallest detail how to preserve the family capital. To achieve this, all marriages took place either within the family (uncles married nieces, cousins and second cousins became spouses, etc.), or girls with a rich dowry entered the house. At the same time, sons-in-law were not allowed to conduct business, but became exclusively hired employees - managers, workers and employees. Family banking grew into a powerful financial system that did not depend on rulers and states. In 1810, the patriarch of the family founded (Mayer Amschel Rothschild and Sons), which flourishes to this day. Already at the beginning of the 19th century, the Rothschild Bank lent not only to individuals, but also to entire states. In 1818, the Rothschilds lent Prussia 5 million pounds, and in 1826, the Rothschild Bank of London provided a loan to the National Bank of England and prevented a liquidity crisis brewing in the country. Dying in 1812, Mayer Amschel Rothschild left a will to his heirs, in which he outlined in detail the principles for the further management of the family enterprise. The will included a whole set of rules, which the descendants must strictly observe (which, by the way, they have been doing for 200 years) for the benefit of the company and themselves. One of the rules: sons-in-law and female descendants have no relation to affairs. Amschel wrote: “My daughters, sons-in-law and their heirs have no connection with the existing company MA Rothschild und Söhne, and also do not have the right to study the affairs of the above-mentioned company, its office books, papers, registers, etc. I will never forgive my children if they go against my parental will and prevent my sons from quietly doing their job.” The Rothschilds have been distinguished throughout these centuries by modesty in secular affairs. They do not boast of wealth; big money loves silence. The family motto, immortalized on the coat of arms: “Concordia, Integritas, Industria” (Concord, Unity, Diligence). Being a private family enterprise, and not a public joint stock company, the Rothschild company has the opportunity not to disclose the true size of its own capital. By the way, the Rothschilds recently became related to the Hiltons, the founders and heirs of the famous hotel chain. Nicky Hilton, sister of socialite Paris Hilton and great-granddaughter of the hotel chain's founder, married James Rothschild. 32-year-old banker and billionaire James Amschel Victor Rothschild is a direct descendant of Mayer Amschel Rothschild, he continues the male line of the ancestor in the 8th generation.
Secret of success
Success in life depends on many factors. Rockefeller had the toughness, acumen necessary for an entrepreneur, determination, hard work and self-confidence. But the real guiding star in life for him was the family, faith and religious values that his mother raised in him. They helped John survive in the brutal oil business with its uncontrolled rampant crime: explosions, blackmail and robbery. Thanks to the unpretentiousness of a believer, Rockefeller knew how to save and always had funds for business investments.
He was not as proud of his fabulous wealth as he was of his honesty and moral values. The paradox is that the billionaire was cruel and ruthless towards his competitors. It was John Rockefeller who always knew how to knock out an opponent. Books can tell the story of how he set up a clash between transport corporations in order to, as a result of a profitable deal, reduce the cost of oil transportation by up to 1.5 times.
Rockefeller's sharp mind and mentality helped him achieve success. He owns such sayings as:
- “If you work all day, you don't have time to get rich.”
- “Earn a reputation and it will work for you.”
- “Success depends on the decisions of the individual himself.”
- “Philanthropy is beneficial if it helps you become independent.”
- “The ability to win people over is one commodity that I am willing to purchase at a price higher than anything else in the world.”
Spy Games
During the “war” to control the market, Standard Oil collected information using an agent network. Fake employees came to work at competing enterprises, collected data for months, and looked for the “weak spots” of the business. Rockefeller met with his spies at different times and prepared dossiers on oil managers. The schedule was planned in a special way: partners, competitors and other visitors did not overlap. Encrypted telegrams flew between the agents and the head office.
Data on the main companies of competitors and all buyers of petroleum products in the United States flocked into a large archive. Part of the file was even small firms, grocers, purchasing kerosene for heating from the Rockefeller company.
Only the pedantic John Rockefeller could plan and conduct such an aggressive war, whose biography contains the following fact: when he was informed of complete victory over his competitors, the millionaire was not at all surprised, because he considered success inevitable.
From pawns to market kings
The year 1870 saw the opening of Rockefeller's oil company, Standard Oil, outpacing its competitors. Together with friend and business partner Henry Flagler, John Rockefeller bought out numerous individual refining and oil production firms to form a trust.
Competitors were left with no choice: join the trust or go bankrupt. At the same time, John did not disdain dirty methods, such as unfair competition and industrial espionage. Rockefeller had many tricks in his arsenal. The use of front companies, which were actually part of Standard Oil, made it possible to enter the local market of a competitor and cause a sharp drop in prices, forcing it to conduct unprofitable activities and go bankrupt. In addition, such opportunities made it possible to “slow down” oil supplies to an unwilling refiner. John acquired bankrupt companies for next to nothing.
Rockefeller concluded contracts with all suppliers, bought oil in huge volumes, leaving other companies without raw materials. It is noteworthy that many oil entrepreneurs did not know that the neighboring companies putting pressure on them were part of Standard Oil, since the strictest secrecy was observed. In 1879, the trust took control of 90% of the oil market.
Little businessman
John Rockefeller Sr. learned from an early age how to manage business and account for all cash flows. According to him, his father helped him with this:
“He often bargained with me and bought various services from me. He taught me how to buy and sell. My father was simply “training” me to get rich!”
At the age of seven, little John was already earning money . He helped his neighbors dig up potatoes, and also got turkeys and began to feed them. Then he sold them.
All income was recorded in a special notebook. And the money itself was conscientiously put into a porcelain piggy bank, which allowed him to accumulate $50 in capital by the age of 13. He lent this money to one of the neighboring farmers at 7.5% per year .
